CHINA> Special Reports
|
CHINA> Special Reports
|
|
Haidian home to innovation, birthplace of legends
By Ting Ting (China Daily)
Updated: 2009-09-12 14:11 As the biggest generator of GDP in Beijing, Haidian district has grown from initiatives begun more than two decades ago, transforming the western area of the capital into the country's technology hub.
Today, Zhongguancun Science Park - China's Silicon Valley - continues to attract new companies and talent with many incentives. Renowned as an incubator for innovation in technology, business and financing, Haidian district is the engine driving the knowledge-based economy in Beijing. President Hu Jintao announced in 2006 that a range of measures would be taken to turn China into an "innovation-oriented" country by 2020. Haidian, home to one-third of the country's hi-tech companies, is the centerpiece of this plan. It began as Zhongguancun Electronics Street in the 1980s, then soared high after it became China's first State-level hi-tech industry development zone in 1988. In June 1999, the State Council, or the Chinese cabinet, approved a strategy to further accelerate the development of Zhongguancun Science Park. As one of the seven parks in the renowned complex that covers a combined 100 sq km, Haidian Science Park is home to more than 15,000 hi-tech firms (from 500 at its inception). The workforce at the park has grown from fewer than 10,000 employees to nearly 400,000. In 2005, high and new-tech enterprises in the district generated 248.5 billion yuan of revenue, making it first out of all 54 State hi-tech development zones in the nation. In addition to its focus on information industry - IT accounts for 70 percent of all business in Haidian - it is also developing a multi-dimensional industrial structure that includes new materials, clean energy, environmental science, financial services, optomechatronics - the fusion of optical and mechatronic engineering - biotechnology and pharmaceuticals. Other emerging technologies under development at the park include digital AVS, next-generation Internet and 3G telecommunications. The district is also encouraging venture investment and financial services, with an emphasis on the introduction of information, settlements and bankcard services for venture investment and large-scale financial institutions. Top talent is indispensable to a world-class science park, and Zhongguancun boasts the biggest concentration of high-caliber talent and research in China. The district is home to more than 80 institutions of higher learning, including the world-renowned Peking and Tsinghua Universities, as well as 200 research institutions including the Chinese Academy of Sciences. There are tens of thousands of undergraduates and postgraduates from nearby universities, and more than 7,000 overseas Chinese have returned to start businesses. About 40 percent of Haidian's 3 million residents have university educations. In Zhongguancun Science Park, this percentage reaches 80 percent, according to data from the Investment Promotion Bureau of Haidian District. Haidian is also hailed as the "green lungs" of urban Beijing. More than 46.3 percent of the district is covered by greenery, and it is home to many tourist attractions including the Summer Palace and the Fragrant Hills. Policy support To nurture the growth of the nation's first State-level hi-tech zone, Zhongguancun Science Park was offered a range of services and served as a testing site for liberal government policies. Tax incentives for companies headquartered in the park proved highly attractive. The income tax is 15 percent for foreign-funded hi-tech enterprises, and reduced to 10 percent if exports surpass 40 percent of output. Hi-tech enterprises are exempt from paying tax for the first three years and pay only 50 percent of the tax rate the following three years. There are also policies to reduce business tax, value-added tax, custom duty and individual income tax. Benefits from the local government are added to reasonable rent, travel perks, high wages and easier startup conditions. International schools are available for the children of foreign professionals. The district government also offers incentives including an innovation development fund, supporting policies for the financial industry and rewards to the enterprises that have made outstanding financial contributions. It provides a "one-stop" service for investment opportunities and offers consultation on the investment environment, partners, locations and co-operations. The district also hosts investment and trade fairs. To improve efficiency, district authorities have integrated e-governance into its administration, enabling businesses and individuals to handle a range of activities and documents online. Also, "a specific fund for the renovation of Zhongguancun's infrastructure and application of technology has been set aside to run alongside existing preferential policies", said Liu Xiaomin, the park's director of international cooperation. 
 
|
